The Importance Of Trade Technology

1517 Words 7 Pages
Regulation needs to occur in regards to innovative technology but also trade technology specifically. Trade has moved on with the advancement of technology to make trade easier. To stay in the past with our current policies would be nonsensical. If companies and their methods are advancing, the rules of the game must also advance with them. The policies and regulations from the CFTC “…have stayed pretty much the same. Most of the CFTC’s rules were written for 20th century analog markets” (Speeches). It might have been effective in the 20th century but now it cannot stay. Keeping the same rules for a different game will only result in unfair play. Updating the policy will keep the system in check. Even if updating means having to rethink the …show more content…
Christopher Giancarlo, in order to determine policy we must consider the question: “What rules are appropriate to recondition 20th century trading markets and their essential institutions so as to benefit from 21st century automated trading while maximizing marketplace safety, soundness, efficiency and resiliency?” (Speeches). The main policy that needs to be created is one that is relevant to today’s society and not the outdated policy that we have been using on an industry that has long since evolved. A policy that not only represents the digital age of FinTech automated transactions with all of its contemporary circumstances but also has a modern and extensive definition of source code as used today. A regulatory policy that maintains the equilibrium of the market while ensuring the protection of one’s intellectual property is necessary. Regulation AT is a policy that can keep its current standards but must also raise those standards by including more policy in relation to source code itself. Pre-testing source code should not be off the table. If it is the only way to ensure that a source code is safe then that might be a necessary measure. Perhaps the CFTC or another institution can find a way to explore an option where that source code is pre-tested upon application for a copyright in order to be used by a company. This still does not help in manners such as security from hackers but testing upon registration will allow for an extra level of …show more content…
Through forum and discussion, each institution can voice their opinion and together they can attempt to come to a combined proposal to benefit and secure the industry. That is where it all must start. From there, we can hope that source code will be addressed for its major role in the financial industry and followed up with a detailed description of the roles it can be defined with, for regulation purposes. Only after a discussion of source code can regulation of FinTech begin. Regulators seem to just be content with focusing on FinTech itself without reaching the core of FinTech itself and discussing how that should be regulated before entity source code created is regulated. The goal is clear: define source code in all of its various forms and uses, regulate it, and then regulate everything it is in and that it affects. The sooner the better because FinTech is already beyond a lot of regulation and it is already hard enough to keep up with

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